We believed and have believed that the bloodbath for the well-known decentralised finance, or DeFi, staking protocol Compound was over. The prognosis could not have been more incorrect because it was not the case.
We have learned that millions more in value and much more than we had previously imagined are currently at risk due to the potential course of events. Anyone who wants it can get their hands on almost $162 million.
This is immediately following an extremely disastrous upgrade. Robert Leshner, the founder of Compound Labs, claims all of this.
The native token of the Compound, known as comp in general usage, is now trading at a loss of roughly 4.8%. Right now, there is a high risk to cryptocurrency, and both users and investors are feeling a little anxious about it since they are unsure of where it will ultimately go. The fact that the expected result did not materialise had alarmed quite a few people.
The Compound leader initially alerted the public to the matter when he tweeted on Friday that there was a capacity or cap on the number of comp tokens that might unintentionally be distributed. The impact, he added, “is limited, at worst, to 280,000 comp tokens,” or $92.6 million.
However, on Sunday morning, Leshner informed the public that the cash pool, which is known to have been emptied once, had been replenished.
As a result, they are now available for exploit, exposing another 202,472.5 comp tokens, or, if you prefer to talk in terms of cold hard cash, about $66.9 million at the current exchange rate.
According to Mudit Gupta, developer of decentralised cryptocurrency exchange SushiSwap, “the crypto market had gone brave, and then they had brushed off the largest-ever money loss in a manner that made it seem as if it was nothing.” “DeFi’s future is undoubtedly bright on the surface, but for the time being, this is unexplored ground.”